Contractionary Monetary Policy Occurs When

question 134

Multiple Choice

Contractionary monetary policy occurs when

• A) a central bank acts to decrease the money supply in an effort to control an economy that is expanding too quickly.
• B) Congress and the president increase taxes in an effort to control an economy that is expanding too quickly.
• C) Congress and the president decrease taxes in an effort to stimulate the economy.
• D) a central bank acts to increase the money supply in an effort to stimulate the economy.
• E) a central bank acts to increase government spending in an effort to stimulate the economy.

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Definitions:

Fixed-Interval

In the context of psychological reinforcement, it refers to a schedule where rewards are given after a fixed time period has elapsed, assuming a correct response is made.

Random-Interval

A timing schedule in operant conditioning where reinforcements are given at unpredictable intervals.

Variability

The extent to which data points in a statistical distribution or data set diverge from the average value.

Brain Wave

Electrical patterns produced by the activity of the brain, often measured by electroencephalography (EEG).